Good Research Paper On Starbucks- Consumer Behavior Project
Utilizing learning theories to influence product service adoption
Competition in the beverage industry has become fierce making players in the market to forge strategic ways of creating awareness and luring their potential clients to consume their products. It should be noted that television, one-sided adverts, billboard, and print media adverts no longer achieve their goals towards capturing the youths who comprise the majority of those who consume beverages (Delbert, and Mothersbaugh 21). Instead, beverage-producing firms such as Starbucks connect with their clients via the social media in order to give them a personalized service and collect data to develop behavioral profiles of consumers. According to a study conducted to establish brain influence of decision-making, the prefrontal cortex takes time to mature and before they mature, they control inhibition, and for this reason, adolescent ability to control urges is low. Advertisers take that opportunity that youths are susceptible to advertisement; thereby, develop their digital and social media tactics.
Starbucks has applied the learning and memory theory of building and developing their brands relative to that of their rival firms. Many consumers have a perception all Starbucks brands are of high quality. A consumer who takes coffee at Starbucks will perceive tea, pastries, and other brands to be of high quality even if they have not tried them. Such people make purchases based on emotional responses and justify their decision based on reality about the product. People’s memories convince them to consume products that they perceive good. Even though Starbucks coffee brands are not scientifically of good quality, people’s perception of their products based on learning makes them consider that products are always good.
Starbucks offers rewards to the working class by ensuring that it provides high quality products at fair prices in nice Grande Cappuccino. Apart from that, the firm offers gifts and hampers to loyal consumers and those that purchase goods and services past a given amount. Such a strategy retains customers despite stiff competition in the market of beverages (Delbert, and Mothersbaugh 23). This explains why the profitability of the firm has been increasing despite its highly priced products. Consumers no longer consider prices to influence their behavior to purchase; instead, they are controlled by the urge to consume quality goods and services and a comfortable environment.
Brand positioning of Starbucks coffee is strong in such a way that the firm attracts a wide market because of its familiarity with the company and its products. Consumers have taken the use of green color positively because it is relaxing, its natural and it has health tranquility, and it relieves stress. All Starbucks workers wear green aprons, a calming color, which calms the depression and the stress of consumers who have spent the whole day working. Currently, the firm does not only offer hot beverages, but also soft drinks such as fresh juice, beer and wine to cater for the needs of all consumers in the market. The commodity market in which Starbucks operates is one where other players have lacked ideas to improve the value of the client. Starbucks has taken this opportunity to improve its market and brand position. Starbucks have emphasized brand consistency and this move has triggered the exposure effect of consumers; hence, it has improved consumer’s perception for the products.
The recent launch of the mobile application of making payment seeks to change the purchasing behavior of consumers. Howard Schultz, CEO of Starbucks observed that since the launch of the mobile app (Fitzgerald 1). Consumers have increased their purchasing behavior because they deemed that paying via a credit card application makes them not to feel the pinch of paying via liquid cash. Operant and classical conditioning behavioral theories have been used by Starbucks to influence the purchasing behavior of consumers. Notably, consumers who use mobile app for paying are charged low prices for goods purchased compared to those who pay via cash. A strategy to pursue clients via the social media, and analyze their behavior in order to influence this behavior using behavioral theories has increased the sales volume of Starbucks. Starbuck understood that youths and children like attention before they can give in and enhance a good relationship.
Competition and product differentiation
Starbucks operations in the market of beverages do not require it to invest much in print and television advertising. The firm has established, and developed its brand in such a way that consumers identify with its brands because of “brand experience”. According to the CEO, the firm does not only offer quality brands, but also ensure ambient environment where its goods and services are sold. For instance, its shops are well-designed to attract consumers and make them feel comfortable and be part of Starbuck community (Pine, and Gilmore 173). Unlike other firms, Starbucks recognizes that its workers are the channel through which its consumers can acquire high quality goods and services and for that reason, workers are rewarded with benefits and bonuses to motivate them. Improving the working conditions of workers seeks to retain and hinder them from working for rival firms. As a differentiation strategy, Starbucks have trained their workers to enable them to offer services competently and professionally relative to its rival, which neglect workers and focus on increasing sales revenue.
Starbucks and Costa coffer are rivals, but the latter’s approach is based on low price unlike Starbuck, whose approach is based on high quality. Starbuck has adopted a strategy of differentiating its products by using luxurious and expensive coffee beans, which makes their products to be of high quality. They price their products high compared to that of rival firms because they not only sell, but also consider the customer satisfaction. The firm keeps producing highly expensive product lines, which favor the needs of all classes of people in the society.
As a differentiation strategy, Starbucks adopted the use of 100% recyclable cups and packaging materials, which has helped it reduce litigations with government and civil rights movements. The firm took an ethical approach of conserving the environment and supporting families of coffee farmers and advising them to be environmental conscious. The firm considers the culture and traditions of consumers in the host country in they operate. The company CEO attributes this to the move to maintain customer loyalty and trust towards the consumption of the firm’s goods and services.
Tactics used to influence memory system
In the first place, the firm target consumers via the social media, it gives them personalized services and studies their behavior; thereby, offer them services that suit their preferences. Youths whose urge are not controlled fall in the trap of Starbuck because their memory inhibits hormones that that regulates urge for new products. To the adults, the firm provides good ambience and private environment that allow the working class to get relaxation after work. The use of green color for the logo and shop design of the company seeks to influence the memory system and lure a potential client towards making an “impulse” purchase of Starbucks goods and services. The Starbuck CEO asserts that before they set up an outlet especially in a new place, they usually study the traffic of motorist and pedestrians. From the study of traffic, the firm can influence the memory of these potential clients by first giving them free offers, or sell them goods and services at subsidized prices (Pine and Gilmore 170).
The firm has created its community of beverage drinkers because most of them are addicted and that any time they feel like taking, they consider taking it at Starbucks because only this place quench their thirst. Looking at some of the advertising statement, Starbuck have tailored them in such a way to influence the mind of consumers. For instance, the firm has always urged consumers to do a good thing by taking a cup of coffee; it is good for them. The experience consumers have had makes them to be consistent with consumption of Starbucks products. The repeated audience exposure to Starbucks products triggers the memory of consumers in such a way that they are not influenced by television of radio adverts of products from rival firms. The move by the firm to introduce mobile application that facilitates paying of their bills sought to influence the mind of consumers and allow them to manage their finances. Apart from that, all youths who have gone digital will always want to be part of the Starbucks community by being loyal consumers to Starbucks product lines.
Fitzgerald, Kate. "Starbucks CEO: Mobile Payment Signals Seismic Change In Consumer Behavior." Payments Source. Source Media Publishers, 27 Jan. 2012. Web. 5 Apr. 2015.
Hawkins, Delbert, and David Mothersbaugh. Consumer Behavior: Building Marketing Strategy. New York: McGraw-Hill Irwin, 2012. Print.
Pine, B. Joseph, and James H. Gilmore. The Experience Economy. Updated ed. Boston, Mass.: Harvard Business Review, 2011. Print.
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